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Jammu & Kashmir Bank reports divergence in provisioning for bad loans in FY19

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Capital Market
Last Updated : Dec 23 2019 | 8:31 AM IST

The Bank said Reserve Bank of India has found that it has under-reported bad loans by Rs 884 crore in the year ended 31 March 2019.

Jammu & Kashmir Bank said Reserve Bank of India has found that it has under-reported bad loans by Rs 884 crore in the year ended 31 March 2019.

Gross NPA divergence was at Rs 195 crore and FY 2019 NET NPA was Rs 689 crore in the year ended 31 March 2019.

Out of Rs 884 crores divergence in provision for NPA, the bank has already made provision of Rs 54 crore upto 30 June 2019. Hence the remaining impact is Rs 830 crore.

The Bank had previously reported net profit of Rs 464.88 crore for FY 2019. Thus, adjusted (notional) net profit for FY 2019 after taking into account the divergence in provisioning turns into net loss of Rs 109.46 crore.

Jammu and Kashmir Bank offers banking services under the three major divisions as Support services, Depository services and Third party services.

The state government of Jammu and Kashmir (J&K) held 59.23% stake in the bank as of 30 September 2019.

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First Published: Dec 21 2019 | 10:12 AM IST

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